Bernstein Forecasts ‘Tokenization Supercycle’ for 2026, Bullish on Crypto and Key Stocks

Following an anticipated period of volatility and weakness in late 2025, Wall Street investment powerhouse Bernstein projects 2026 as the definitive start of a transformative “tokenization supercycle.” Analysts at the firm suggest that the cryptocurrency market may have already completed its bottoming phase, positioning the current market pullback as an opportune moment for strategic investment in “cryptocurrency concept stocks.”

Bitcoin’s Ambitious Trajectory: $200,000 by 2027

Led by Gautam Chhugani, Bernstein’s analytical team has reaffirmed its optimistic outlook for Bitcoin. Despite a noticeable cooling of market sentiment towards the close of last year, the fundamental underpinnings of the industry remain exceptionally robust. The firm anticipates Bitcoin reaching an impressive target price of $150,000 by 2026, with an even bolder projection of a cycle peak potentially soaring to $200,000 in 2027.

At the time of the original report, Bitcoin was trading at approximately $90,000, experiencing a modest 2.7% decline over the preceding 24 hours. While Bitcoin itself concluded 2025 with an approximate 6% annual decrease, the performance of cryptocurrency concept stocks painted a vastly different picture. These equities achieved an impressive average annual return of 59%, signaling strong investor confidence and capital recognition for the long-term potential and development of the crypto industry.

Tokenization: The Next Frontier Driving Market Growth

Bernstein identifies “asset tokenization” as the pivotal engine for the next wave of sustained growth in the cryptocurrency market. In light of this, analysts have assigned an “Outperform” rating to several key players poised to lead this revolution: Robinhood (HOOD), Coinbase (COIN), Figure (FIGR), and Circle (CRCL). These companies are highlighted as the most representative “tokenization concept stocks” currently available in the market, positioned to capitalize on this emerging trend.

Three Core Pillars Fueling Crypto’s Expansion

Bernstein’s report meticulously outlines three critical pillars expected to propel the cryptocurrency industry into its next phase of exponential growth:

1. The Evolution of Stablecoins

   Stablecoins are rapidly transcending their traditional role as mere cryptocurrency trading instruments, evolving into a fundamental and integral component of the mainstream financial ecosystem. Bernstein analysts forecast a substantial 56% year-over-year increase in the total global stablecoin supply by 2026, reaching an estimated $420 billion. This significant growth is primarily attributed to their increasing utility in cross-border commercial payments, consumer remittances, and the emergence of innovative banking models built upon stablecoin technology.

2. Real-World Asset (RWA) Tokenization

   A significant and transformative driver will be the tokenization of real-world assets – the conversion of traditional assets such as stocks, bonds, funds, and real estate into on-chain digital tokens. Bernstein projects a doubling of the Total Value Locked (TVL) in tokenized assets, from approximately $37 billion in 2025 to an impressive $80 billion in 2026. This forecast underscores the accelerating adoption and immense potential of this groundbreaking financial innovation.

3. The Rise of Prediction Markets

   The third engine of growth stems from the burgeoning sector of prediction markets. Bernstein estimates a staggering 100% year-over-year increase in total trading volume within this sector by 2026, reaching approximately $70 billion. This burgeoning activity is expected to generate a substantial annual revenue of roughly $1.4 billion for exchanges and market makers operating in this dynamic space.